business

The summer of 2020 has been a record setter for heat in the South East. Even though it was only mid-July, the city of Thermal has recorded 28 days of plus 90-degree weather, three times the normal number for the entire summer. With no relief in sight, and temperatures hovering in the mid to upper nineties, there is great concern throughout the community for the elderly and for families with young children who do not have air conditioning.

You are the owner of the JKL Company, a medium-sized hardware retailer who has always had significant sales of window air conditioners in the summer months. This year, your entire inventory was sold out by the end of June. You have been making frantic telephone calls for weeks trying to find sources of additional window air conditioners. In the interim, you have been developing the waiting list of over 400 customers who are willing to pay premium prices for these units.

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Yesterday you received a telephone call from a supplier informing you that he has just shipped 300 air conditioners to you and they should be arriving within the week. You also received a telephone call yesterday from the mayor=s office. Due to the severity of the heat crisis, the city is looking to purchase air conditioners for the elderly and families with small children who cannot normally afford these units. Although the city is willing to pay a reasonable price for these units, it is far less than the premium price you can obtain by selling them at current market rates.

The lingering economic downturn has had a significant adverse of fact on JKL’s sales and profits over the last eight years and with two children in college, personal cash flow has become an ongoing family concern.

What are the public relations issues? How do you respond to the call from the mayor’s office? Is there anyway to avoid the dilemma of being blamed for someone’s death regardless of who you sell the air conditioners to?

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